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Deindustrialisation. Lessons from the StructuralOutcomes of Post-Communist Transition

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Author Info
Tomasz Mickiewicz ()
Anna Zalewska ()

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Abstract

Theoretical and empirical studies show that deindustrialisation, broadly observed in developed countries, is an inherent part of the economic development pattern. However, post-communist countries, while being only middle-income economies, have also experienced deindustrialisation. Building on the model developed by Rowthorn and Wells (1987) we explain this phenomenon and show that there is a strong negative relationship between the magnitude of deindustrialisation and the efficiency and consistency of market reforms. We also demonstrate that reforms of the agricultural sector play a significant role in placing a transition country on a development path that guarantees convergence to EU employment structures.

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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 463.

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Length: 43 pages
Date of creation: 01 Jan 2002
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Handle: RePEc:wdi:papers:2002-463

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Related research
Keywords: economic transition employment structures deindustrialisation liberalisation convergence

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Find related papers by JEL classification:
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ruggerone, Luigi, 1996. "Unemployment and Inflationary Finance Dynamics at the Early Stages of Transition," Economic Journal, Royal Economic Society, vol. 106(435), pages 483-94, March. [Downloadable!] (restricted)
  2. Rodrik, Dani, 1995. "The Dynamics of Political Support for Reform in Economies in Transition," CEPR Discussion Papers 1115, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Yin, Xiangkang, 2001. "A dynamic analysis of overstaff in China's state-owned enterprises," Journal of Development Economics, Elsevier, vol. 66(1), pages 87-99, October. [Downloadable!] (restricted)
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  4. C Grafe & C Wyplosz, 1998. "The Real Exchange Rate in Transition Economies," CEP Discussion Papers 0395, Centre for Economic Performance, LSE. [Downloadable!]
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  5. Crafts, Nicholas, 1996. "Deindustrialisation and Economic Growth," Economic Journal, Royal Economic Society, vol. 106(434), pages 172-83, January. [Downloadable!] (restricted)
  6. Blanchard, O & Kremer, M, 1996. "Disorganization," Working papers 96-30, Massachusetts Institute of Technology (MIT), Department of Economics.
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  7. Roland, Gerard, 1994. "On the Speed and Sequencing of Privatisation and Restructuring," Economic Journal, Royal Economic Society, vol. 104(426), pages 1158-68, September. [Downloadable!] (restricted)
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  8. R Jackman & C Pauna, 1997. "Labour Market Policy and the Reallocation of Labour Across Sectors," CEP Discussion Papers 0338, Centre for Economic Performance, LSE. [Downloadable!]
  9. Peter Christoffersen & Peter Doyle, 2000. "From Inflation to Growth," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 421-451, July. [Downloadable!] (restricted)
  10. de Melo, Martha & Denizer, Cevdet & Gelb, Alan & Tenev, Stoyan, 1997. "Circumstance and choice : the role of initial conditions and policies in transition economies," Policy Research Working Paper Series 1866, The World Bank. [Downloadable!]
  11. Aghion, P. & Blanchard, O.J., 1993. "On the Speed of Transition in Central Europe," Working papers 93-8, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Johannes Stephan, 2003. "Industrial Specialisation and Productivity Catch-Up in CEECs - Patterns and Prospects," ERSA conference papers ersa03p320, European Regional Science Association. [Downloadable!]
    Other versions:
  2. Dr Johannes Stephan, 2004. "Evolving Structural Patterns in the Enlarging European Division of Labour: Sectoral and Branch Specialisation and the Potentials for Closing the Productivity Gap," Development and Comp Systems 0403003, EconWPA. [Downloadable!]
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